APPLIED ECONOMICS EXAM.

1. MERALCO is the biggest electric company in the Philippines and provides electricity to the whole Metro Manila. MERALCO is a perfect example of what market structure?

a. Oligopoly b. Monopoly c. Perfect competition d. Monopolistic Competition

2. Irene was once a Globe subscriber but switched to Sun because of its better call-and-text promos.These telecommunications companies are examples of what market structure?

a. Monopoly, b. Oligopoly, c. Perfect Competition, d. Monopolistic Competition

3. Organization of Petroleum Exporting Countries (OPEC) is an organization of countries that produces huge amount of petroleum. This agreement among countries is an example of a ________

a. Monopoly, b. Price Takers, c. Cartel d. All of these are correct

4. When washing her laundry, Jane prefers the liquid soap more than the bar or the powder. The soap industry shows what kind of a market structure?

a. Perfect Competition, b. Oligopoly, c. Monopoly, d. Monopolistic Competition,

5. Upon analysing its finances, Company X found out that the sum of its fixed and variable cost exceeds the total revenue from the sale of its products. What is the right action for Company X?

a. Shut down the firm, b. Exit the market, c. Enter the market, d. None of the are correct,

6. The soap industry offers a variety of products. One can buy a liquid detergent, a bar soap, or a powder whichever he/she prefers. The soap products are therefore differentiated in what way?

a. Human Capital differentiation,

b. Marketing differentiation,

c. Physical product differentiation,

d. Distribution differentiation,

7. Daisy owns a bakery. She noticed that the price of the flour increased greatly that the total variable cost now exceeds the store's total revenue. What will be the best recommendation for Daisy?

a. Exit the market b. Enter the market, c. Shut down the store, d. None of these are correct,

8. While walking around the mall, Michelle passed by a store with a post that reads "All items on 50% sale". This is an example of a ___________

a. Human Capital differentiation, b. Physical product differentiation, c. Marketing differentiation, d. Distribution differentiation,

9. Emma buys her groceries from wholesalers because of the considerable lower price of products than in a retail store. The scenario depicts a

a. Marketing differentiation, b. Human Capital differentiation, c. Physical product differentiation, d. This market structure has a lot of many buyers and sellers offering identical goods and services.

a. Monopoly, b. Oligopoly, c. Perfect Competition, d.Monopolistic Competition,

10. This market structure has a lot of many buyers and sellers offering identical goods and services.

a. Monopoly, b. Oligopoly, c. Perfect Competition, d. Monopolistic Competition,

11. When a dollar could buy three avocados a decade ago, now a dollar can buy only two, then purchasing power has _______over time.

a. Decreased, b. Increased, c. Not changed at all, d. None of these are correct,

12. Which of the following are affected by purchasing power?

a. Investors, b. Economy, c. Consumers, d. All of these are correct,

13. What happen/s when there is an excessive inflation?

a. Currency's purchasing power falls, b. Cost of living rises., c. Prices of goods and services also rise., d. All of these are correct

14. Which of the following is/are true when price rises?

a. Buyers pay more for goods and services.

b. Sellers receive more than what they sell.,

c. Each peso buys fewer goods and,services.

d. All of these are correct,

15. "Consumer Price Index indicates a rise or fall in the price of four hundred select items ranging from groceries to housing."

a. True b. False c. Never d. None of these are correct